The Scottish Government has published a new migration policy paper proposing a package of Scotland-specific immigration measures. The proposals are intended to help Scotland attract and retain overseas workers and graduates, respond to population change, support economic growth and strengthen rural and island communities.
The headline proposals include a new Scottish Visa, a Rural Visa pilot and a Scottish Graduate Visa. The paper also calls for Scotland-specific flexibility within parts of the existing UK immigration system. These are policy proposals only. They do not create new immigration routes and are not presently open for applications. Immigration remains reserved to the UK Government, meaning that implementation would require its agreement and changes to the UK Immigration Rules.
Scottish Visa
The Scottish Government proposes a place-based route for individuals who wish to live and work in Scotland. Under the model outlined in the policy paper, applicants would be required to reside in Scotland and would be connected to Scotland through their tax status. The proposal is intended to provide greater flexibility than existing sponsored work routes, including by avoiding a fixed salary threshold.
The route would be aimed at responding to Scotland’s particular demographic and labour market needs. However, important practical questions would need to be resolved, including eligibility criteria, the respective roles of the UK and Scottish Governments, how residence in Scotland would be monitored and the consequences of an individual subsequently moving elsewhere in the UK.
Rural Visa pilot
A separate Rural Visa is proposed for communities experiencing depopulation and difficulties recruiting workers. The suggested model would involve employers and participating communities, potentially beginning with a limited pilot across selected areas.
A place-based route of this kind could create additional recruitment options for employers that struggle to meet the requirements of the Skilled Worker route. Its value would, however, depend on the occupations covered, the role of local employers and authorities, any numerical limits, and the conditions attached to living and working in a participating area.
Scottish Graduate Visa
The paper proposes a Scottish Graduate Visa that would allow eligible international graduates to remain in Scotland for up to two additional years. The route would permit work across most roles and self-employment, without a salary threshold.
The proposal is intended in part to address the UK Government’s planned reduction of the Graduate route from two years to 18 months from 2027. It would seek to give graduates in Scotland more time to establish their careers and move into longer-term immigration routes.
Greater flexibility within existing routes
The Scottish Government is also seeking broader changes to the application of UK immigration policy in Scotland. The published proposals include calls for greater flexibility around Skilled Worker salary requirements, student dependants and some of the financial requirements applying to family migration. A possible extension for Youth Mobility Scheme participants living in Scotland is also identified.
International comparisons
Scotland would not be the first country to adopt a place-based approach to immigration. Canada provides perhaps the most developed comparator, with provinces and participating communities able to influence the selection of migrants according to regional economic and demographic needs. In particular, the Atlantic Immigration Pilot combined employer-led recruitment with provincial involvement and settlement support. A formal Canadian Government evaluation found that the pilot was helping employers address labour market needs and that the expected programme outcomes were being met. It was subsequently established as the permanent Atlantic Immigration Program.
International experience nevertheless indicates that attracting migrants to a region is only part of the challenge. Research comparing regional programmes in Canada and Australia found that such schemes can change initial settlement patterns, although Canada was more successful in redistributing migration flows and longer-term retention remained influenced by local economic conditions. The experience suggests that any Scottish model would be most effective if regional selection were accompanied by genuine employment opportunities, employer participation, settlement support and a credible route to permanent residence, rather than relying principally on a requirement to live or work in a particular location.
There is no immediate change to the rules governing recruitment or sponsorship in Scotland. Employers must continue to use the existing UK immigration routes and apply the current eligibility, sponsorship and salary requirements.
Nevertheless, the paper is an important policy development. If any of the proposals are taken forward, they could provide additional options for employers looking to:
Businesses should avoid presenting the proposed visas to candidates as available or confirmed routes. Their introduction would require UK Government support, detailed eligibility rules and an implementation framework.
The proposals recognise a practical issue faced by many Scottish employers, and in fact for many regions outside of the Southeast of England: a single UK-wide immigration framework does not always reflect regional differences in salaries, population trends and access to workers.
Place-based immigration routes are not straightforward to design. In particular, any eventual system would need to provide clarity on how a requirement to live or work in Scotland would operate in practice, how compliance would be monitored and whether visa holders could change employers or relocate elsewhere in the UK. However, given his public desire to move authority outside of London, and existing successful global models, this may be a proposal that garners Prime Minister Burnham’s attention.
For employers, the immediate value of the paper is therefore strategic rather than operational. Organisations with a significant Scottish, or regional, workforce may consider identifying the roles, locations and graduate populations that might benefit from a future Scotland-specific or regional route. This evidence may also help employers contribute meaningfully to future consultations or engagement with government.
The Scottish Government has invited engagement with the UK Government on the proposals. Further political agreement and detailed policy development would be required before any new route could be introduced.
Vialto is monitoring developments. We can support employers in assessing how the proposals could affect their workforce strategy, reviewing current recruitment barriers in Scotland and considering whether existing immigration routes provide alternative solutions in the meantime.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Lyudmyla Davies
Partner
Sarah Ingles
Partner
Adam Sinfield
Director
Andrea Als
Director
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